European Court of Justice Issues Preliminary Ruling on Lithuanian VAT Rules for Late Payment Interest

The European Court of Justice (ECJ) April 30 issued a preliminary ruling in Case No. C-544/24, on Lithuanian VAT rules for late payment interest and penalties. The taxpayer, a Lithuanian company that was found guilty of VAT fraud, sought an exemption from late payment interest and penalties imposed by the Lithuanian tax authorities. The tax authorities set late payment interest with a fixed penalty, allowing no reduction, regardless of the infringement’s nature or severity. Upon request for a preliminary ruling, the ECJ held that the Treaty on the Functioning of the European Union (TFEU) and EU Directive 2006/112/EC, read in ...